The behind-the-scenes "pie" of the Electric Dealer Carnival

Alipay provides data showing that, in addition to Taobao, 90% of the payment is provided by Shangpai customers, 40% of the turnover from the commercial pie. This is a "Beikewen" behind the electric dealer.

Yiu Lingyu, head of the Antarctic electricity business, has recently achieved a full sense of achievement. In the "Double 11" Taobao Shopping Carnival day, the Antarctic in 24 hours completed 650,000 orders, inventory instantaneous away. 650,000, the number is ranked first in the underwear category, in all Taobao merchants, the total number of daily orders are also the largest.

Such a large order does not appear in the bill and the wrong single, such a large amount of data flow also has no impact on the system, benefiting from the electrical vendors behind the software provider. Shanghai Commercial Network Technology Co., Ltd. (SHOPEX, referred to as "Shang Faction") is the Antarctic people to win the shopping war behind the hero, they provide e-commerce software and services.

Alipay provides data showing that, in addition to Taobao, 90% of the payment is provided by Shangpai customers, 40% of the turnover from the commercial pie.

But Shangpai chairman and CEO Li Jongwei still regrets: "The Antarctic stock is limited, if the inventory is sufficient, millions of orders are possible." ”

"Take the House" for the electric dealer

What makes Li Jongwei so emboldened is the commercial software development, application and service technology.

"If we think of E-commerce as a tenant, we are the people who give them a house." "Li Jongwei like this analogy Shangpai role in the electric business world.

If you do not want to do business, entrepreneur Wang Tao may not know Shangpai, like many consumers only know Lenovo, Belle of the online mall, but do not know backstage operation of the whole shop system is from Shangpai. After understanding the mode of operation of the operator, Wang Tao faced the choice: to spend tens of thousands of of money to hire a dedicated software team to build the electric business platform? Or the use of professional software and service providers to build the platform?

Wang Tao finally chose to resort to professional software and service providers. "Many people want to do e-commerce, but for cost and efficiency considerations, it is impossible to keep a technical team to do their own platform." "The founder of the 2002 business was based on the demand of such clients as Wang Tao, that is, you can do e-commerce for individuals or businesses to carry out online shop construction, and provide them from E-commerce marketing, as well as payment, logistics and even management of a full set of software solutions, this is the commercial survival and development of space.

In the delineation of the scope of business, 2003, the company launched the first domestic mature single product "Shopex Independent shop software." In the following nine years, Shangpai has launched for the large-scale traditional enterprises and high-end brand enterprises design ECP cross-platform multi-channel socialization Collaborative enterprise-class E-business platform for the overall solution, as well as small and medium-sized customers design easy to open shop one-stop quick build shop solutions and other dozens of sets of products system. For example, in this "Double 11" event, the Antarctic people use is the Shang-faction of the Amoy tube ERP products. This product's unique "Dam buffer" technology, can through the central data buffer pool, according to the Customer system processing ability, stably to push the data to the customer, avoids because of the massive data causes the system to crash; In addition, this set of Tao Tube ERP system also has visual monitoring disk function, once the data anomaly, can immediately troubleshoot the solution , the monitoring disk in addition to the detection of current orders, can also be based on field operations flow processing speed, predict the next few days of shipments, and timely feedback to the official flagship store front desk, to help the electrical business calmly cope with the surge of traffic.

Li Jongwei to our correspondent, "Technology is the core of development". Although the technology is perfect, but the development of the commercial school is not no competitor. In fact, with the rise of Taobao, ebay and other platforms, there have been many "shop-building companies", that is, a few people will be programmed, from the requirements to the software functional design of all the work. But in Li Jongwei's view, unlike them, Shangpai has the following advantages: the business and industry understanding of E-commerce is very profound, "E-commerce site is definitely more than a page, or a shopping cart transaction process." It has a lot of calculations, need to have a management concept "; The technical reserve is sufficient, and more than 300 of the 800 employees in the whole company are technicians; Shangpai provides the service classification, according to the need to provide the primary, low-level, senior and top-level these four kinds of different products and related supporting service system.

In ten years, Shangpai has accumulated 1.33 million customers, creating not less than 660,000 orders a day for these customers, and the average customer will reach 70 million consumers per day. "We're not quite sure who else will be able to compete with us," he said. Li Jongwei said positively.

From the charge to the free

There was a story of the American Gold Age: in the middle of the 19th century, a large gold mine was found in California, tens of thousands of people went to gold, a 17-year-old Gold Digger, he saw the valley of dry climate, scarce water, the search for gold miners suffering from lack of water, so he gave up gold, and turned to the miners to sell water, This young man is a Yammer of wealth. It can be said that Shangpai is the electric business in the era of the water supply people.

China's E-commerce Development Report, published by the Ministry of Commerce, shows that China's e-commerce transactions amounted to 5.88 trillion yuan in 2011, an increase of 29.2% per cent, and the proportion of SMEs in E-commerce has exceeded 40%. Shangpai's turnover has also been greatly increased in the context of the booming electricity business. 2010, business income of about 100 million, annual income growth rate reached 300%. Both last year and this year are keeping doubling growth. "We think we need to control the pace of growth a little bit, so next year we will consider ways to help our customers reduce costs," Li Jongwei told The Economist.

Li Jongwei believes that in the future it is the most basic, the lowest level of infrastructure, so customers should use lower cost to obtain IT products. As a result, the 2006 sellers of software-making profits are now announcing that the platform is free. Like Apple's App Store, Shangpai put some of the "lightweight" apps on an open platform, and its customers can download the software they need and build it for free. "Switching from pay to free is a very idealistic transformation," he said. At that time we did not have data support to prove that free is feasible. We just feel the cost of it needs to be reduced, and it is good business to collect money from the customers who make it.

Shangpai's profit model has shifted from selling software to providing late-stage products and value-added services to customers who can do business or get started, and some users who use free software can be trained to become potential paying customers.

While it sounds like a "go with the Senses" transition, the free model brings a sharp increase in users. Since 2006, the number of Shangpai users has been increasing at a rate of 100% each year. The number of new users added each year has jumped 7.5 times times from the past 200.

With the number of users crazy up there is also the risk, since April 2006 free after the year, the commercial school almost no income, and one months before free, Shangpai income is more than 100,000 yuan. Only 6% per cent of the 600,000 subscribers to the 2010 were willing to pay, and only 5% of the current 1.33 million customers had paid subscribers. But the surge in user size has played a late-onset advantage. These free software customers are gradually paying for the follow-on services offered by the commercial parties. Shangpai also successfully transformed into "software free, service charge" E-commerce software development and related solutions and service providers.

It is worth mentioning that Shangpai's main competitor, Ecshop, followed suit with the introduction of a free model. Then the merchant chose to buy the company.

Power Supplier Multi-channel Sales

To be profitable by 5% of paid subscribers, the service will be practical enough.

Li Jongwei to our reporter introduction: "The service station in the whole network, E-commerce ecological Circle of the whole industry chain." Even small electric dealers, there are related suppliers, such as logistics services, have to do warehousing, marketing, and shooting, these are the key industry chain services, but also the real needs of the electrical business, but we are in the software design and services to add to the elements. For example, on the day of the "Double 11", its use of Amoy-tube ERP has a synergistic function, the system can handle orders, can also be transferred to Third-party Logistics and warehousing order processing, that is, two of the Antarctic warehouse can be immediately informed of the order, the system can also make "by which warehouse delivery more reasonable, By which logistics issued faster "overall coordinated and unified distribution."

Not only a store warehouse, logistics between such, a brand of a variety of sales channels can also be scientific management through the system. "This is currently the most popular customer", Li Jongwei Introduction, Belle Shoes in the operation Taobao store success, want to do an independent official E-commerce platform, I hope that in the case of not "Amoy", can open the official website, and in the Pat, ebay and other open platforms on the opening of the brand Mall, at the same time in the outstanding, where customers on distribution. Merge the front end of the official consumer, Third-party platform, distribution network and other channels, the orders generated by different channels, payment requirements, shipping needs, logistics needs, etc. into the unified operation of the enterprise management system, all the customer information from different platforms on the batch import, to achieve the line of all sales channels of unified management and integration, This is the commercial "multi-sales channel management system" application.

Li Jongwei said: "Although 19.1 billion of the ' double 11 ' carnival is owned by Taobao, but can not be separated from the electrical business background system support." This is to be proud of. "